Losses narrow at Urban Splash

Commercial and residential developer Urban Splash reduced its annual post-tax loss from £38.3m in 2009 to £10.3m in the year to April 2010.

The figure for the current year includes £6.3m of exceptional items such as redundancy payments which are expected to be one-offs, Splash said.

Sales reduced to £34.5m from £49.9m in 2010 and, Splash said, "residential sales continue to be a challenge due to a very difficult mortgage market and negative sentiment of many valuers which made every apartment completion a challenge."

Rental income rose from £10.6m to £12.7m, commercial rent accounting for 10.6m and residential £2.1m. The portfolio of managed and let flats increased by 83 units to 383 at year end with a value of £59.4m (2009: £48.4m).

The mature investment portfolio of commercial space totals 2m sq ft and suffered an 8% fall, or £9.1m, and stands at £146.8m. Development schemes completed at Chips in New Islington along with others in Leeds and Plymouth.

In October 2009 splash completed a three-year £101.2m facility with HSBC and in March 2010 raised £49.4m from the Homes & Communities Agency and banks to build out Lakeshore in Bristol, Pattern House at Longlands in Stalybridge and the second phase of Saxton in Leeds. These projects are now fully funded to completion.

Net debt reduced slightly from £221.8m to £221.0m.

Chairman Tom Bloxham said: "We as a business are not yet through all the difficulties, but I believe we can now see a clear way forward. I believe my team has done an amazing job navigating through the difficulties of this economic recession, the drop in property values and the banking collapse.

"I am very proud of what we have achieved last year but there is still much to be done but despite all the difficulties around us we have proved once again that we are capable of delivering some amazing regeneration projects and driving our business forward."